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Do you realize how much people pay for PPC and its possible negatives?

Discussion in 'Website Development and Design Discussion' started by David G, Aug 22, 2002.

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  1. David G

    David G Internet Entrepreneur DNFcollege.com Exclusive Member

    Joined:
    Apr 15, 2002
    Location:
    Sonoran Desert
    Local Time:
    11:08 AM
    Someone recently posted how crazy it is and wondering why people pay so much for just one click and commented how some firms must have too much money to spend.

    It is truly amazing how firms pay Overture and Google so much for a simple click. Especially since the percentage of clicks which become orders is incredibly low, a very low percentage.

    I have a number of domains/websites where the exact same words/phrase as my domain name has PPC rates from $5 to as much as $25 per click. Isn't it unbelievable a firm would pay up to $25 for a click with such a small chance the click will become a client with an order?

    What makes this so odd is the fact these same places paying these insane PPC fees will not advertise on my websites for love or money or for almost no cost comparatively speaking. This is especially odd since some of my traffic comes from highly targeted type-ins of the exact term they pay tons of money for paying per click at Overture/Google.

    I have approached some firms and offered them a page 1 text or banner link for low fees such as $75 for an entire month and they almost always say no. Yet the same company does not hesitate spending zillions on these dubious value PPC programs.

    Often I wonder if competitors click on these paid links to run up the bills. Many times I run across $10 to $25 PPC links. Do you realize someone could click say 10 times a day for a month and cost the PPC advertiser as much as $3,000 to $7,500 a month.

    A competitor or even a disgruntled present or former employee could easily do this, or simply someone who enjoys causing trouble or expenses to website operators he may not even be involved with in any way!

    I am not accusing anyone but even the operator of the PPC Program (especially small little known firms offering it) could click on the links, perhaps done via a script, though there is absolutely no indication that is being done by anyone, but is a possibility. Since order rates are so miniscule anyway there would be no good way for the client to judge if that happens.

    These online firms who are paying zillions for clicks will typically not spend money on prepaid advertising, even though the cost is very low and also fixed, and not subject to abuse. This is one of the great internet mysteries and has puzzled me for a long time.
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